Driveaway insurance is temporary coverage that protects you while you're transporting a vehicle you don't own — typically a car you just bought, a rental, or a vehicle you're delivering for someone else.
Unlike your regular auto policy, driveaway insurance exists specifically for the trip itself. It covers liability (damage you cause to others), collision (damage to the vehicle you're driving), and comprehensive (theft, weather, vandalism) during the transport period. The coverage is short-term, usually lasting anywhere from one day to 30 days, depending on the policy and how far you're traveling.
You buy it when you need to drive a vehicle that either isn't insured yet or whose existing insurance won't cover the specific trip. A newly purchased car from a private seller, a rental truck, or a vehicle you're moving across the country are the most common scenarios. The insurer knows the trip is temporary and limited in scope, so the premium reflects that — typically $15 to $50 for a short haul, though longer distances or multiple drivers cost more.
Key Takeaways
- Driveaway insurance covers liability, collision, and comprehensive damage during a temporary transport trip, usually lasting one day to 30 days.
- You need it when the vehicle you're driving has no active insurance or when the owner's insurance won't cover a specific journey.
- Dealerships often include driveaway coverage in the purchase price, so ask before buying a separate policy.
- The policy covers only the named driver and the specific vehicle during the stated trip period — it does not extend to regular driving after the trip ends.
- Rental companies sometimes bundle driveaway coverage into their rental agreement, so check your rental paperwork before purchasing additional coverage.
When you actually need driveaway insurance
The most straightforward scenario is buying a used car from a private seller and driving it home. Your own insurance does not automatically cover a vehicle you don't yet own, and the seller's insurance will not cover you as the driver. If you drive without coverage, you're liable for any accident — and so is the seller. Driveaway insurance bridges that gap for the trip from the seller's location to your home or to your insurance agent's office.
A second common case is renting a vehicle for a one-way trip. Some rental companies include basic driveaway coverage in the rental agreement; others require you to purchase it separately or use your own auto insurance. Read the rental contract carefully — the coverage may already be there, or you may have the option to decline it if your personal policy covers rental vehicles.
You also need driveaway insurance if you're transporting a vehicle for someone else — delivering a car you sold to a buyer in another state, for example, or moving a family member's vehicle. The owner's insurance typically does not cover a driver who is not listed on the policy, and you cannot add yourself to their policy for a single trip. Driveaway insurance solves this without requiring a permanent policy change.
What driveaway policies actually cover
A standard driveaway policy includes three main coverages. Liability covers damage you cause to other people's property or injuries you cause to other people — the same as liability on a regular auto policy. Collision covers damage to the vehicle you're driving if you hit something or someone hits you. Comprehensive covers theft, vandalism, weather damage, and other non-collision events.
The deductible on each coverage varies by policy, typically ranging from $250 to $1,000. A lower deductible costs more upfront but means you pay less out of pocket if something happens. Most driveaway policies do not include uninsured motorist coverage or medical payments coverage, though some insurers offer these as add-ons.
What driveaway insurance does not cover is any driving after the trip ends. Once you reach your destination, the policy expires. If you then drive the vehicle again without switching to a permanent policy, you're uninsured. This is why dealerships often require you to have your own insurance in place before you leave the lot — they want to know you're covered the moment the driveaway period ends.
How driveaway insurance differs from your regular auto policy
Your regular auto insurance is tied to you and your vehicle. It covers you whenever you drive that car, anywhere, for any reason, for as long as the policy is active. Driveaway insurance is tied to a specific trip and a specific vehicle. It has a start date and an end date, and it covers only the named driver or drivers during that window.
Regular policies also build a claims history that affects your rates going forward. A driveaway claim may or may not appear on your record, depending on the insurer — some treat it as a separate transaction that does not follow you to your next policy. This is one reason driveaway insurance is cheaper: the insurer expects a one-time use and does not factor it into long-term risk assessment.
Another difference is that regular auto insurance requires the vehicle to be registered in your name. Driveaway insurance does not — it covers you driving someone else's vehicle or a vehicle you've just purchased but not yet registered. This flexibility is the entire point of the product.
Where to buy driveaway insurance and what it costs
You can purchase driveaway insurance from most major insurers — State Farm, Geico, Progressive, and Allstate all offer it, though not always under that exact name. Some call it "temporary auto insurance" or "transit coverage." You can also buy it from smaller insurers that specialize in short-term policies.
The cost depends on the distance, the vehicle's value, the driver's age and driving record, and the coverage limits you choose. A 100-mile trip for a driver with a clean record might cost $20 to $30. A 1,000-mile trip or a driver under 25 might cost $50 to $100. Adding an extra driver or requesting higher liability limits will increase the premium.
Before you buy, check whether the cost is already included in your purchase or rental. Many car dealerships include driveaway coverage in the sale price — you may not need to buy it separately. Rental companies sometimes do the same. If you're buying from a private seller, ask whether their insurance covers you as a temporary driver; some policies do, which would save you the cost of a separate driveaway policy.
How to buy driveaway insurance and what information you'll need
You can purchase driveaway insurance online, by phone, or in person at an insurance office. Most insurers let you buy it in minutes. You'll need the vehicle's identification number (VIN), the vehicle's make and model, the trip's start and end dates, the distance you'll be traveling, and your driver's license information.
If there will be more than one driver, provide each driver's name, date of birth, and driving record. Some insurers charge per driver; others include one or two drivers in the base premium. The insurer will ask about any accidents or violations in the past three to five years — be honest, as misrepresenting your driving history can void the policy if you file a claim.
Once you've purchased the policy, you'll receive a declarations page and proof of insurance, usually by email. Print the proof of insurance or save it on your phone — you'll need to show it to the vehicle owner, the rental company, or a police officer if you're stopped. The policy is active when ready upon purchase, so you can drive as soon as you have the proof in hand.
What happens if you have an accident during the driveaway period
If you're in an accident while covered by driveaway insurance, the process is the same as with any other auto policy. Call the insurer's claims line, provide the policy number and details of the accident, and follow their instructions. Take photos of the damage, get the other driver's information, and file a police report if there are injuries or significant damage.
The insurer will assign a claims adjuster, who will inspect the vehicle and determine whether the damage is covered. If it is, they'll either pay for repairs directly or reimburse you, depending on your policy. If you're found liable for damage to the other vehicle or property, the insurer will handle that claim as well, up to your liability limit.
One important note: if the accident happens after your driveaway period has ended, the policy will not cover it. This is why it's critical to know your policy's end date and to arrange permanent insurance before that date arrives. If you're delayed on your trip, contact the insurer when ready to extend the coverage or purchase a new policy.
Frequently Asked Questions
Can I use driveaway insurance if I'm under 25?
Yes, but the premium will be higher. Drivers under 25 are statistically more likely to have accidents, so insurers charge more. Some insurers have a minimum age of 18 or 21; check with the company before you buy. If you're under 18, you may not be able to purchase driveaway insurance at all, depending on state law.
Does driveaway insurance cover me if I drive the vehicle after the trip ends?
No. The policy covers only the specific trip during the stated dates. Once the end date passes, you're uninsured. You must have permanent auto insurance in place before the driveaway policy expires, or you cannot legally drive the vehicle.
What if the vehicle I'm driving gets stolen during the driveaway period?
Comprehensive coverage on a driveaway policy covers theft. You'll need to file a police report and then contact your insurer's claims line. The insurer will investigate and, if theft is confirmed, will pay the actual cash value of the vehicle minus your deductible.
Can I add a second driver to my driveaway policy after I've purchased it?
Most insurers allow you to add a driver before you start the trip, but not after. Contact your insurer as soon as you know there will be a second driver. Some policies include one or two drivers automatically; others charge per driver. Adding a driver after the trip has started may not be possible, so plan ahead.
Is driveaway insurance the same as rental car insurance?
They're similar but not identical. Rental car insurance is designed for rental vehicles and is often bundled into the rental agreement. Driveaway insurance is broader — it covers any vehicle you're temporarily driving, whether it's a rental, a newly purchased car, or someone else's vehicle. If you're renting, check your rental agreement first; the coverage may already be included.